Make your books useful before asking for a tax strategy

Tax planning depends on numbers that the owner and adviser can understand. A reconciled balance sheet is as important as an income statement. Organize transactions so the team can tell what happened, who was paid, what the business acquired, and whether an amount belongs to an owner account.

Close the month consistently

Reconcile bank and credit-card accounts, review receivables and payables, and identify unresolved transactions. Add schedules for loans, fixed assets, payroll, and owner activity. Record questions as they arise rather than allowing them to accumulate until a filing deadline.

Create a repeatable handoff

Use the same folder structure and naming convention for each reporting period. Include a short explanation of unusual activity and a list of missing documents. Ask the tax team what additional schedules are needed for the specific business rather than assuming every company needs the same packet.

Bring this to the conversation.

• Reconciled bank and credit-card accounts
• Profit and loss statement and balance sheet
• Loan, fixed-asset, payroll, and owner schedules
• Supporting invoices and a list of unresolved items

Three questions worth asking.

1. Which balance-sheet accounts are not reconciled?
2. Who owns the remaining cleanup?
3. What information is missing from the tax handoff?

Turn the discussion into a next step.

Ask for a written action list that identifies what should happen, who is responsible, and when the team should review the result. Keep supporting documents with the decision so the books, payroll, and return preparation can follow the same facts.

Reference and applicability.

Related IRS guidance. The checklist and meeting agenda are editorial preparation tools, not an IRS-prescribed procedure. Tax treatment, elections, and deadlines depend on the facts and applicable law. This page does not establish an advisory relationship.